Charter reportedly exploring Altice USA acquisition: BBG
Telecom company Charter Communications (CHTR) — its services branded as Spectrum — is reportedly exploring a takeover of cable provider Altice USA (ATUS), according to Bloomberg. Yahoo Finance Live discusses the outlook of a potential deal between the two companies.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
[AUDIO LOGO]
JULIE HYMAN: Charter Communications is reportedly exploring a takeover of Altice USA. That's according to Bloomberg. It's unclear whether an offer has actually been made, and Charter could decide not to pursue a transaction. According to this report here-- Altice, remember, was part of the European telecom company and then spun out of it in 2018. It has about 5 million residential and business customers over 21 states. So we'll see if something has been happening here. I mean, it's been a tough business for a lot of the cable providers.
JOSH LIPTON: Yeah, Bloomberg's saying in this report, it's actually unclear whether a formal approach has actually been made as yet. And obviously, Charter could decide not to pursue something. It doesn't sound like the companies are talking either way right now. They do certainly have some things in common. Both are dealing with obviously wireless competition. Both also saddled with really plunging share prices here. Charter is down about 20% over the past year. Altice is down about 50%. But you know, Patrick Drahi has made it clear-- Altice is up for sale, and bidders are welcome. So we'll see how it was.
JULIE HYMAN: By the way, in addition to that big drop in the share price, Altice USA also has about $25 billion in debt.
JOSH LIPTON: Yup.
JULIE HYMAN: So that's something that Charter obviously would have to consider.
